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Azerbaijan Finance Ministry’s medium-term bonds placed first time since 25 July

August 15, 2014Uncategorizedjay

Baku, Fineko/abc.az. The state medium-term bonds (SMTBs) of the Azerbaijani Ministry of Finance have been placed for the first time since 25 July.

In today’s efficient auction at the Baku Stock Exchange the overall demand totaled only 13.85% of the general placement (AZN 13 million).

The BSE informs that on 15 August one BSE member submitted an order for AZN 1.8 million for purchase of 20% of the SMTBs offered for the auction with ISIN-code AZ0106014449, issued for AZN 9 million at par value.

The order was submitted at the price of 100% of bond par value (yield 4.25%). Under the MoF’s decision, the bonds were satisfied at the price of 100% of SMTB par value. As a result, the bonds with ISIN-code AZ0106014449 were sold for AZN 1.8 million with yield of 4.25%. The maturity date of the bonds with this ISIN-code with 1,092-day turnover period is 11 August 2017.

Placement of SMTBs with ISIN-code AZ0105013442 (turnover period 728 days and yield of 3.75%) for AZN 4 million at par value should have been held today as well. However, there is no data on this trading.

This year, the MoF plans to issue SMTBs for AZN 200 million at par value. It has been set out bonds for AZN 85 million for the held auctions that allowed raising AZN 29.1 million.

The SMTBs that were placed the 3rd, 5th, 7th-9th, 11th and 13th did not find the demand at the primary market.

Last year 17 out of 34 auctions on SMTBs proved fruitless. With the issue for AZN 184 million the Ministry of Finance raised only AZN 83.8 bn.

In 2012 the Ministry planned the SMTBs for AZN 20 million at par value and from their placement the Ministry raised AZN 18.998 million through 15 efficient auctions.

The price of 100.87% suggested during placement on 30 November 2012 still remains the record price suggested ever for medium-term bonds of the Finance Ministry.

Tags: AZN, BAKU, International Securities Identification Number, isin, ISIN-code AZ0105013442, SMTBs, state medium-term bonds

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